First Time Employee

Tags: First Time Employee, individual


On taking up employment for the first time

What is Needed?

  • Apply for a Board of Inland Revenue (BIR) File Number

  • Give BIR Number to your Employer

  • Complete a Tax Declaration Form 1 (TD1) and give to your employer.

    A TD1 would require prior approval from the Inland Revenue Division where claims are made in respect of – Tertiary Education Expenses, First Time Acquisition of Home, Alimony/Maintenance, Contributions to Deferred Annuity or Pension Plans, Investment in Venture Capital.

    A new TD1 must be completed and submitted to your employer within seven days of a change in any of your deductions.

  • Ensure that your employer is deducting the correct Income Tax from your emoluments (Income).

  • Assess your Tax Liability by April 30th of the year following that in which you earned the Income to ensure you paid the correct tax for that year. Interest is charged at the rate of 20% per annum from May 1st to the date the payment is made.

  • Keep all records of TD 4 Certificates obtained from your employer(s).

  • If required to File an Income Tax Return, ensure that all supporting documents are attached including your TD4 Certificates.

  • Income from all sources must be included on ONE Income Tax Return for a year of income.